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Guaranteed Buy to Let
Leaseback
The guaranteed Buy to Let – Leaseback program is an exciting way for overseas investors to purchase Paris freehold real estate in established tourist developments for pure investment or holiday occupancy. The benefits are impressive, with the main benefits including the VAT refund, non-taxable rental income, guaranteed rental income, long term capital growth potential, and high-quality rental company to manage your property, insuring that the overseas investor have a hands-free purchase. Guaranteed rents and competitive mortgage rates make it easy to pay for your property, while you enjoy it for your holiday occupancy. Many investor packages are available. Please check out our informative F.A.Q Leaseback below to find answers to some of the most common questions investors have about this profitable program.
IDEAL FOR: A hassle-free, pure investment for the long term with little or no use required of the property for 20 years.
MAIN BENEFITS:
- Tourist Developments
- Freehold Real Estate
- VAT Refund
- Non-Taxable Rental Income
- Government Approved Program
- Fully Managed and Rented
- Guaranteed Rental Income
- Fully Furnished
- Holiday Occupancy Possible
The Leaseback scheme has been around in France for over 20 years and is a government-backed scheme providing a 16.9% discount on the property purchased (in the form of a VAT refund) in return for making the property available for long term let through a long-term rental guarantee scheme from a major management company. IMOINVEST International has further enhanced this scheme and this makes purchasing Leaseback Property in this manner through ourselves very safe and painless even for people who do not speak any French.
The Leaseback scheme offers you a freehold property (typically in a holiday home location such as the Riviera, The Alps, Paris, Dordogne etc) that you wish to rent either purely or primarily on a commercial basis for the long-term - this means typically 20 years or so. Most schemes offer the option for the owner to use the property for a few weeks of the year in return for a lower rent. The guaranteed rents vary from 3 to 6% typically with mortgage rates at just over 3% currently. Deposits required are from 20% and the repayment mortgage can often be covered by the rental income - however this is normally the case if you do not use the property at all. If you are happy to make a small subsidy towards the repayment element of the mortgage each month you can get more flexible use of the property yourself. In all cases currently being seen, the interest element of the mortgage is always covered by the rental guarantee as is part or all of the repayment element - if a small subsidy is required, most clients regard this as equivalent to making a payment into a pension scheme as the money you pay immediately becomes additional equity in the property and is not a true cost.
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How IMOINVEST Assists You:
- IMOINVEST carefully selects developments for our clients from all the available leaseback schemes - we do not sell all properties available as it is important to only select developments that have an excellent location, long-term capital growth potential, a very high-quality rental company providing the rental guarantee, a good quality lease (Bail Commercial) that is fairly balanced between the management company and yourselves and a very reputable builder. Making mistakes in any of these areas will be very costly for you long-term and IMOINVEST takes this selection process very seriously.
- IMOINVEST's multilingual staff assists you with all the paperwork that you will be involved in during the purchase from the reservation contract, furniture order, act of sale, miscellaneous correspondence received, notary correspondence, bank correspondence and much more - in summary we provide a full after-sales service to make your purchase as simple as possible. This is a free service to our clients.
- IMOINVEST has developed long-term relationships with key service providers that we can recommend wholeheartedly including English-speaking solicitors to independently help you through the process should you require this and international banks offering the most flexible investor packages and the lowest rates at any given time to make sure your investment offers the best return.
F.A.Q. Leaseback
Is Leaseback the same as Timeshare?
What happens if I have to sell the property before the end of the Leaseback term?
Who maintains and takes care of the utilities for my property during the Leaseback period?
Why is there a discount on the purchase price?
Am I able to live in my own property when I book my holiday time, and what about off seasons?
What happens if I can't use or wish to use more than my allocated weeks?
How is the rental income guaranteed?
What happens at the end of the Leaseback period?
Is it possible that I would get a higher rental return if I bought the property outright and rented it myself?
How much cash would I need upfront in order to buy a Leaseback, as opposed to a Classic property?
Would I get a higher rental return if I bought the property outright?
How much cash would I need to buy a Leaseback versus an older property?
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